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IIA Internal Audit Practitioner Sample Questions:

1. During a travel expense audit engagement, the internal auditor discovered that the accounts payable staff spend a significant amount of time previewing expense reports before the reports are sent to managers for review and approval. The total of all expense reports during a year represents less than 1% of the organization' s total budget. Which of the following best supports the auditor'srecommendation to reduce the level of reviews?

A) The duplication of effort in the review process is unnecessary.
B) The cost of the control outweighs the benefit.
C) The inherent risk of travel expense fraud is low.

2. Which of the following best describes the knowledge, skills, and abilities that internal auditors should possess with regard to fraud?

A) Sufficient knowledge to evaluate the risk of fraud.
B) Expertise in detecting and investigating fraud.
C) Specialized skills for developing and implementing controls to prevent fraud.

3. When is it appropriate for the internal auditor to determine the engagement's scope and objectives?

A) In the final engagement report
B) During the planning of the engagement
C) During the performance of the engagement

4. Which of the following analytical procedures would be most effective for an internal auditor to examine changes in performance over time?

A) Analysis of common size financial statements
B) Trend analysis
C) Ratio analysis

5. During which stage of an audit engagement would the engagement supervisor identify the tasks that were already completed and the remaining tasks to be performed?

A) When developing the test approach.
B) When documenting the work program.
C) When allocating resources.

Solutions: